EXHIBIT 99
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News Release | |
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For further information contact: Geralyn DeBusk Halliburton Investor Relations 972-458-8000 |
Dave & Buster’s, Inc. Achieves Record Setting
Fiscal Year 2011 Adjusted EBITDA of $98.4 million
DALLAS—April 12, 2012—Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, today announced results for its fiscal year and fourth quarter ended January 29, 2012.
Total revenues increased 6.3% to $144 million in the fourth quarter of 2011, compared to $135.5 million in the fourth quarter of 2010. The year-over-year revenue increase was driven by a $1 million increase in comparable store sales and a net $7.5 million increase in revenues from non-comparable stores and other revenue sources. Across all stores, Food and Beverage revenues increased $2.9 million or 4% and Amusements and Other revenues increased $5.6 million or 8.8% compared to the fourth quarter of 2010.
Adjusted EBITDA increased 7.1% to $29.9 million in the fourth quarter of 2011 versus $28.0 million in the fourth quarter of fiscal 2010.
Total revenues for the 52-week period increased 3.8% to $541.5 million from $521.5 million for the comparable period last year. This revenue increase was comprised of a 2.2% increase in comparable store sales, and a net $11.6 million increase in revenues from non-comparable stores and other revenue sources. Our positive revenue gains were partially offset by a $2.4 million revenue reduction related to the second quarter 2011 closure of a store in Dallas, Texas. Total Food and Beverage revenues increased $5.1 million or 1.9% and revenues from Amusements and Other increased $14.9 million or 5.9%.
Adjusted EBITDA for the 52-week period increased 14% to $98.4 million versus $86.3 million for the comparable period last year.
"We are extremely pleased with our performance in 2011" said Steve King, Chief Executive Officer. "A return to positive comparable store sales, diligent management of our costs and an outstanding group of new stores combined for our best Adjusted EBITDA year ever."
Non-GAAP Financial Measures
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.
The Company will hold a conference call to discuss fourth quarter results on Thursday, April 12, 2012, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). To participate in the conference call please dial (877) 317-6789 a few minutes before call start time and reference “The Dave & Buster’s Conference Call” (conference ID# 10011980). Canadian callers should dial (866) 605-3852; callers from all other international locations should dial 1 (412) 317-6789 to participate in the call. Additionally, a live and archived webcast of the conference call will be available on the Company's website, www.daveandbusters.com.
Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster’s is the premier national owner and operator of 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 owns and operates 59 stores in 25 states and Canada. For additional information on Dave & Buster’s, please visit www.daveandbusters.com.
The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by our level of indebtedness, general business and economic conditions, the impact of competition, the seasonality of the company’s business, adverse weather conditions, future commodity prices, guest and employee complaints and litigation, fuel and utility costs, labor costs and availability, changes in consumer and corporate spending, changes in demographic trends, changes in governmental regulations, unfavorable publicity, our ability to open new stores, and acts of God.
DAVE & BUSTER’S, INC.
Condensed Consolidated Balance Sheets
(in thousands)
| January 29, 2012 | January 30, 2011 | |||||||
| (audited) | (audited) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 33,684 | $ | 34,407 | ||||
| Other current assets | 41,310 | 42,284 | ||||||
| Total current assets | $ | 74,994 | $ | 76,691 | ||||
| Property and equipment, net | 323,342 | 304,819 | ||||||
| Intangible and other assets, net | 380,326 | 383,032 | ||||||
| Total assets | $ | 778,662 | $ | 764,542 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Total current liabilities | $ | 86,643 | $ | 81,877 | ||||
| Other long-term liabilities | 104,987 | 96,417 | ||||||
| Long-term debt, less current liabilities, net unamortized discount | 345,167 | 346,418 | ||||||
| Stockholders' equity | 241,865 | 239,830 | ||||||
| Total liabilities and stockholders' equity | $ | 778,662 | $ | 764,542 | ||||
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(unaudited)
| 13 Weeks Ended | 13 Weeks Ended | |||||||||||||||
| January 29, 2012 | January 30, 2011 | |||||||||||||||
| Food and beverage revenues | $ | 74,900 | 52.0 | % | $ | 72,012 | 53.2 | % | ||||||||
| Amusement and other revenues | 69,056 | 48.0 | % | 63,446 | 46.8 | % | ||||||||||
| Total revenues | 143,956 | 100.0 | % | 135,458 | 100.0 | % | ||||||||||
| Cost of products | 29,043 | 20.2 | % | 26,525 | 19.6 | % | ||||||||||
| Store operating expenses | 77,984 | 54.2 | % | 71,261 | 52.7 | % | ||||||||||
| General and administrative expenses | 9,192 | 6.3 | % | 8,161 | 6.0 | % | ||||||||||
| Depreciation and amortization | 14,404 | 10.0 | % | 12,906 | 9.5 | % | ||||||||||
| Pre-opening costs | 1,428 | 1.0 | % | 452 | 0.3 | % | ||||||||||
| Total operating expenses | 132,051 | 91.7 | % | 119,305 | 88.1 | % | ||||||||||
| Operating income | 11,905 | 8.3 | % | 16,153 | 11.9 | % | ||||||||||
| Interest expense, net | 7,963 | 5.5 | % | 8,321 | 6.1 | % | ||||||||||
| Income before income tax provision | 3,942 | 2.8 | % | 7,832 | 5.8 | % | ||||||||||
| Income tax provision | 2,140 | 1.5 | % | 3,331 | 2.5 | % | ||||||||||
| Net income | $ | 1,802 | 1.3 | % | $ | 4,501 | 3.3 | % | ||||||||
| Other information: | ||||||||||||||||
| Company-owned and operated stores open at end of period (2) | 58 | 57 | ||||||||||||||
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| January 29, 2012 | January 30, 2011 | |||||||
| Total net income | $ | 1,802 | $ | 4,501 | ||||
| Add back: Interest expense, net | 7,963 | 8,321 | ||||||
| Income tax benefit | 2,140 | 3,331 | ||||||
| Depreciation and amortization | 14,404 | 12,906 | ||||||
| EBITDA | 26,309 | 29,059 | ||||||
| Add back: Loss (gain) on asset disposal | 261 | (3,326 | ) | |||||
| Share-based compensation | 185 | 263 | ||||||
| Currency transaction loss (gain) | 87 | (54 | ) | |||||
| Pre-opening costs | 1,428 | 452 | ||||||
| Reimbursement of affiliate expenses | 133 | 204 | ||||||
| Deferred amusement revenue and ticket redemption liability adjustments | 1,149 | 693 | ||||||
| Transaction and other costs | 394 | 680 | ||||||
| Adjusted EBITDA (3) | $ | 29,946 | $ | 27,971 | ||||
DAVE & BUSTER’S, INC.
Consolidated Statements of Operations
(dollars in thousands)
(audited)
| 52 Weeks Ended | 52 Weeks Ended | |||||||||||||||
| January 29, 2012 (1) | January 30, 2011 (1) | |||||||||||||||
| Food and beverage revenues | $ | 272,606 | 50.3 | % | $ | 267,514 | 51.3 | % | ||||||||
| Amusement and other revenues | 268,939 | 49.7 | % | 254,025 | 48.7 | % | ||||||||||
| Total revenues | 541,545 | 100.0 | % | 521,539 | 100.0 | % | ||||||||||
| Cost of products | 107,168 | 19.8 | % | 103,981 | 19.9 | % | ||||||||||
| Store operating expenses | 306,868 | 56.7 | % | 300,498 | 57.7 | % | ||||||||||
| General and administrative expenses | 34,896 | 6.4 | % | 42,734 | 8.2 | % | ||||||||||
| Depreciation and amortization | 54,277 | 10.0 | % | 50,018 | 9.6 | % | ||||||||||
| Pre-opening costs | 4,186 | 0.8 | % | 2,289 | 0.4 | % | ||||||||||
| Total operating expenses | 507,395 | 93.7 | % | 499,520 | 95.8 | % | ||||||||||
| Operating income | 34,150 | 6.3 | % | 22,019 | 4.2 | % | ||||||||||
| Interest expense, net | 32,516 | 6.0 | % | 32,462 | 6.2 | % | ||||||||||
| Income (loss) before income tax provision (benefit) | 1,634 | 0.3 | % | (10,443 | ) | -2.0 | % | |||||||||
| Income tax provision (benefit) | 679 | 0.1 | % | (3,148 | ) | -0.6 | % | |||||||||
| Net income (loss) | $ | 955 | 0.2 | % | $ | (7,295 | ) | -1.4 | % | |||||||
| Other information: | ||||||||||||||||
| Company-owned and operated stores open at end of period (2) | 58 | 57 | ||||||||||||||
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods
| 52 Weeks Ended | 52 Weeks Ended | |||||||
| January 29, 2012 (1) | January 30, 2011 (1) | |||||||
| Total net income (loss) | $ | 955 | $ | (7,295 | ) | |||
| Add back: Interest expense, net | 32,516 | 32,462 | ||||||
| Provision (benefit) for income taxes | 679 | (3,148 | ) | |||||
| Depreciation and amortization | 54,277 | 50,018 | ||||||
| EBITDA | 88,427 | 72,037 | ||||||
| Add back: Loss (gain) on asset disposal | 1,279 | (2,397 | ) | |||||
| Share-based compensation | 1,038 | 2,491 | ||||||
| Currency transaction loss (gain) | 103 | (143 | ) | |||||
| Pre-opening costs | 4,186 | 2,289 | ||||||
| Reimbursement of affiliate expenses | 854 | 626 | ||||||
| Deferred amusement revenue and ticket redemption liability adjustments | 1,539 | 1,276 | ||||||
| Transaction and other costs | 946 | 10,101 | ||||||
| Adjusted EBITDA (3) | $ | 98,372 | $ | 86,280 | ||||
NOTE
(1) As previously reported by the Company, on June 1, 2010, affiliates of Oak Hill Capital Partners acquired all of the outstanding capital stock of our direct parent, Dave & Buster’s Holdings, Inc. Accounting principles generally accepted in the United States require operating results for the Company prior to the June 1, 2010 acquisition to be presented as Predecessor’s results in the historical financial statements. Operating results for the Company subsequent to the June 1, 2010 acquisition are presented or referred to as Successor’s results in our historical financial statements. References to the 52 week period ended January 30, 2011 included in this release, relate to the 244 day period ended January 30, 2011 in the Successor period and the 120 day period ended May 31, 2010 in the Predecessor period. References to the 52 week periods ended January 29, 2012 included in this release, relate to the Successor periods. The results for the Successor periods include the impacts of purchase accounting.
(2) The store counts as of the end of both fiscal periods include our location in Nashville, Tennessee, which closed as a result of damages sustained in a flood on May 2, 2010. The store reopened on November 28, 2011. The store count as of January 30, 2011, includes a store in Dallas, Texas, which was permanently closed on May 2, 2011.
(3) EBITDA, a non-GAAP measure, is defined as net income (loss) before income tax expense (benefit), interest expense (net) and depreciation and amortization. Adjusted EBITDA, also a non-GAAP measure, is defined as EBITDA plus (gain) loss on asset disposal, share-based compensation expense, pre-opening costs, reimbursement of affiliate expenses, and other non-cash or non-recurring charges. The company believes that EBITDA and Adjusted EBITDA (collectively, “EBITDA – Based Measures”) provide useful information to debt holders regarding the Company’s operating performance and its capacity to incur and service debt and fund capital expenditures. The Company believes that the EBITDA – Based Measures are used by many investors, analysts and rating agencies as a measure of performance. In addition, Adjusted EBITDA is approximately equal to “Consolidated EBITDA” as defined in our senior secured credit facility and indentures relating to the Company’s senior notes. Neither of the EBITDA – Based Measures is defined by GAAP and neither should be considered in isolation or as an alternative to other financial data prepared in accordance with GAAP or as an indicator of the Company’s operating performance. EBITDA and Adjusted EBITDA as defined in this release may differ from similarly titled measures presented by other companies.